NeuroPace Inc

Previous wording

Our RNS System is currently indicated in the United States for use in adult epilepsy patients, meaning patients who are 18 years of age or older, with drug-resistant focal epilepsy. As of March 31, 2024, over 5,000 patients have received our RNS System. We believe our compelling body of long-term clinical data, demonstrating continuous improvement in outcomes over time, will support the continued adoption of our RNS System among the approximately 575,000 adults in the United States with drug-resistant focal epilepsy. We continue seeking indication expansion to, over time, cover the entire approximately 1.2 million drug-resistant epilepsy patients in the United States and may additionally seek to expand our operations to reach the approximately 16.5 million drug-resistant epilepsy patients globally.

Current wording

Our RNS System is currently indicated in the United States for use in adult epilepsy patients, meaning patients who are 18 years of age or older, with drug-resistant focal epilepsy. As of June 30, 2024, over 6,000 patients have received our RNS System. We believe our compelling body of long-term clinical data, demonstrating continuous improvement in outcomes over time, will support the continued adoption of our RNS System among the approximately 575,000 adults in the United States with drug-resistant focal epilepsy. We continue seeking indication expansion to, over time, cover the entire approximately 1.2 million drug-resistant epilepsy patients in the United States and may additionally seek to expand our operations to reach the approximately 16.5 million drug-resistant epilepsy patients globally.

Previous wording

Since our inception, we have generated significant losses. We have financed our operations primarily through sales of our products, issuance of equity securities, and debt financing. As of March 31, 2024, we had an accumulated deficit of $512.7 million, cash, cash equivalents and short-term investments of $58.9 million, and $58.0 million of outstanding term loans, net of debt discount and issuance costs.

Current wording

Since our inception, we have generated significant losses. We have financed our operations primarily through sales of our products, issuance of equity securities, and debt financing. As of June 30, 2024, we had an accumulated deficit of $520.2 million, cash, cash equivalents and short-term investments of $55.5 million, and $59.0 million of outstanding debt under a term loan, net of debt discount and issuance costs.

Previous wording

We believe our existing cash, cash equivalents and short-term investments will allow us to continue our operations for at least the next 12 months.

Current wording

Based on our current planned operations, we believe our existing cash, cash equivalents and short-term investments will allow us to continue our operations for at least the next 12 months. See “Liquidity and Capital Resources - Future Funding Requirements” for additional information.

Previous wording

In August 2022, we entered into an exclusive distribution agreement, or the Distribution Agreement, with DIXI Medical USA Corp., or DIXI Medical, pursuant to which we became the exclusive U.S. distributor of DIXI Medical’s product line beginning in October 2022. DIXI Medical is a subsidiary of a European company that pioneered the development of stereo electroencephalography, or Stereo EEG, electrodes and related products. These products are used in the epilepsy monitoring units, or EMUs, of comprehensive epilepsy centers to determine where epileptic seizures originate. In addition to providing us with an incremental revenue stream, the DIXI Medical partnership provides us with improved visibility of patients moving through the EMUs, many of whom may be candidates for our RNS System. This synergistic partnership leverages our field organization that is already calling on the same customers and supports our objective to engage earlier in the diagnostic and therapy selection process. DIXI Medical provides us with ongoing commercial support and supplies the DIXI Medical products we order.

Current wording

In August 2022, we entered into an exclusive distribution agreement, or the Distribution Agreement, with DIXI Medical USA Corp., or DIXI Medical, pursuant to which we became the exclusive U.S. distributor of DIXI Medical’s stereo electroencephalography, or Stereo EEG, product line beginning in October 2022. DIXI Medical is a subsidiary of a European company that pioneered the development of Stereo EEG electrodes and related products. These products are used in the epilepsy monitoring units, or EMUs, of comprehensive epilepsy centers to determine where epileptic seizures originate. In addition to providing us with an incremental revenue stream, the DIXI Medical partnership provides us with improved visibility of patients moving through the EMUs, many of whom may be candidates for our RNS System. This synergistic partnership leverages our field organization that is already calling on the same customers and supports our objective to engage earlier in the diagnostic and therapy selection process. DIXI Medical provides us with ongoing commercial support and supplies the DIXI Medical products we order.

Previous wording

Our goal is to establish our RNS System as a standard of care for drug-resistant epilepsy. We intend to continue to promote awareness of our RNS System within existing and new accounts through additional investments in training and education of clinicians, epilepsy centers, hospitals and patients on the clinical benefits of our RNS System for the treatment of drug-resistant epilepsy. In addition, we intend to publish additional clinical data in scientific journals and to continue presenting at medical conferences. We plan to continue building patient awareness through direct-to-patient marketing initiatives, which include advertising, social media and online education. We also intend to continue supporting patient and referring clinician outreach efforts to help increase the number of appropriate patients with drug-resistant epilepsy being treated at CECs, including by way of our expansion into the community setting. These efforts require significant investment by our marketing and sales organization.

Current wording

Our goal is to establish our RNS System as a standard of care for drug-resistant epilepsy. We intend to continue to promote awareness of our RNS System within existing and new accounts through additional investments in training and education of clinicians, epilepsy centers, hospitals and patients on the clinical benefits of our RNS System for the treatment of drug-resistant epilepsy. In addition, we intend to publish additional clinical data in scientific journals and to continue presenting at medical conferences. We plan to continue building patient awareness through direct-to-patient marketing initiatives, which include advertising, social media and online education. We also intend to continue supporting patient and referring clinician outreach efforts to help increase the number of appropriate patients with drug-resistant epilepsy being treated at CECs and outside of CECs, including by way of our expansion into the community setting. These efforts require significant investment by our marketing and sales organization.

Previous wording

We derive revenue from sales of our RNS System to hospital facilities both for initial RNS System implant procedures and for replacement procedures when our implanted devices reach end of service. We launched our current neurostimulator model in 2018. This device has an average battery life of nearly eleven years, an increase from the previous model of the device. We expect that the percentage of our revenue from replacement procedures may continue to decrease over the next few years as a result of the extended replacement cycle of the newer device. In addition, a change in procedure mix between initial and replacement procedures may have a negative impact on our gross margin. Beginning in the fourth quarter of 2022, we also began to derive revenue from sales of DIXI Medical products. A change in product mix between sales of our RNS System and DIXI Medical products would cause variability in our gross margin.

Current wording

We derive revenue from sales of our RNS System to hospital facilities both for initial RNS System implant procedures and for replacement procedures when our implanted devices reach end of service. We launched our current neurostimulator model in 2018. This device has an average battery life of nearly eleven years, an increase from the previous model of the device. We expect that the percentage of our revenue from replacement procedures may continue to decrease over the next few years as a result of the extended replacement cycle of the newer device. In addition, a change in procedure mix between initial and replacement procedures may have a negative impact on our gross margin. We also derive revenue from sales of DIXI Medical products. A change in product mix between sales of our RNS System and DIXI Medical products would cause variability in our gross margin.

Previous wording

Beginning in the fourth quarter of 2022, we also derive revenue from sales of DIXI Medical products, primarily to our current customer base. Our revenue from the sale of DIXI Medical products will fluctuate in the future due to a variety of factors, including our ability to take market share from competitive Stereo EEG products. Beginning in the fourth quarter of 2023, we also derive revenue from services provided to Rapport pursuant to our collaboration agreement with Rapport.

Current wording

We also derive revenue from sales of DIXI Medical products, primarily to our current customer base. Our revenue from the sale of DIXI Medical products will fluctuate in the future due to a variety of factors, including our ability to take market share from competitive Stereo EEG products.

Previous wording

Cost of goods sold consists primarily of costs related to materials, components and subassemblies, personnel-related expenses for our manufacturing and quality assurance employees, including stock-based compensation, manufacturing overhead and charges for excess, obsolete and non-sellable inventories. Overhead costs include the cost of quality assurance, testing, material procurement, inventory control, operations supervision and management personnel, an allocation of facilities and information technology expenses, including rent and utilities, and equipment depreciation. Cost of goods sold also includes certain direct costs such as those incurred for shipping our RNS System. We record adjustments to our inventory valuation for estimated excess, obsolete and non-sellable inventories based on assumptions about future demand, past usage, changes to manufacturing processes and overall market conditions. Beginning in the fourth quarter of 2022, cost of goods sold also includes costs of procuring DIXI Medical products. We expect cost of goods sold to increase in absolute dollars as more of our RNS Systems and DIXI Medical products are sold.

Current wording

Cost of goods sold consists primarily of costs related to materials, components and subassemblies, personnel-related expenses for our manufacturing and quality assurance employees, including stock-based compensation, manufacturing overhead and charges for excess, obsolete and non-sellable inventories. Overhead costs include the cost of quality assurance, testing, material procurement, inventory control, operations supervision and management personnel, an allocation of facilities and information technology expenses, including rent and utilities, and equipment depreciation. Cost of goods sold also includes certain direct costs such as those incurred for shipping our RNS System. We record adjustments to our inventory valuation for estimated excess, obsolete and non-sellable inventories based on assumptions about future demand, past usage, changes to manufacturing processes and overall market conditions. Cost of goods sold also includes costs of procuring DIXI Medical products. We expect cost of goods sold to increase in absolute dollars as more of our RNS Systems and DIXI Medical products are sold.

Previous wording

Revenue increased by $3.7 million, or 25%, to $18.1 million during the three months ended March 31, 2024, compared to $14.5 million during the three months ended March 31, 2023. The increase in revenue was primarily due to an increase in the number of units sold for initial implant procedures and an increase in sales of DIXI Medical products, partially offset by a decrease in units sold for replacement implant procedures in the three months ended March 31, 2024, as compared to the three months ended March 31, 2023. Revenue from sales of our RNS System for replacement procedures represented approximately 4% of our total revenue for the three months ended March 31, 2024, as compared to approximately 8% for the three months ended March 31, 2023. Substantially all of our revenue, with the exception of less than $0.1 million, was generated from sales in the United States.

Current wording

Revenue increased by $2.7 million, or 17%, to $19.3 million during the three months ended June 30, 2024, compared to $16.5 million during the three months ended June 30, 2023. The increase in revenue was primarily due to an increase in the number of RNS System units sold and an increase in sales of DIXI Medical products. Substantially all of our revenue, with the exception of $0.1 million in the three months ended June 30, 2024, was generated from sales in the United States.

Previous wording

Cost of goods sold increased by $0.7 million, or 17%, to $4.8 million during the three months ended March 31, 2024, compared to $4.1 million during the three months ended March 31, 2023. The increase was primarily due to the increase in sales volume. Our gross margin increased from 71.7% for the three months ended March 31, 2023, to 73.6% for the three months ended March 31, 2024 primarily due to lower fixed costs per unit as a result of increased production volume of the RNS System, and higher gross margin on service revenue, partially offset by the lower gross margin from distribution of DIXI Medical products.

Current wording

Cost of goods sold increased by $0.6 million, or 13%, to $5.1 million during the three months ended June 30, 2024, compared to $4.5 million during the three months ended June 30, 2023. The increase was primarily due to the increase in sales volume. Our gross margin increased from 72.5% for the three months ended June 30, 2023, to 73.4% for the three months ended June 30, 2024 primarily due to lower fixed costs per unit as a result of increased production volume of the RNS System, partially offset by the lower gross margin from distribution of DIXI Medical products.

Previous wording

Research and development expenses increased by $0.5 million, or 10%, to $5.8 million during the three months ended March 31, 2024, compared to $5.3 million during the three months ended March 31, 2023, primarily due to an increase of $0.8 million in personnel-related expenses, including stock-based compensation. The increases were offset in part by an increase of $0.3 million in grant funds received primarily under the NIH funding agreement which are recognized as a reduction in research and development expenses.

Current wording

Research and development expenses increased by $0.7 million, or 14%, to $6.1 million during the three months ended June 30, 2024, compared to $5.3 million during the three months ended June 30, 2023, primarily due to an increase of $0.5 million in product development and clinical trial expenses and an increase of $0.4 million in personnel-related expenses. The increases were offset in part by an increase of $0.3 million in grant funds received primarily under the NIH funding agreement which are recognized as a reduction in research and development expenses.

Previous wording

Selling, general and administrative expenses increased by $1.7 million, or 12%, to $15.1 million during the three months ended March 31, 2024, compared to $13.4 million during the three months ended March 31, 2023. This increase was primarily due to an increase of $1.8 million in personnel-related expenses driven by an increase in our sales and field support personnel and severance costs during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, and an increase of $0.2 million in sales, field support and marketing costs, including travel. The increases were offset in part by a decrease of $0.3 million in general and administrative costs, primarily insurance.

Current wording

Selling, general and administrative expenses increased by $1.5 million, or 5%, to $29.4 million during the six months ended June 30, 2024, compared to $27.9 million during the six months ended June 30, 2023. This increase was primarily due to an increase of $1.2 million in personnel-related expenses driven by an increase in our sales and field support personnel during the six months ended June 30, 2024, compared to the six months ended June 30, 2023, and an increase of $0.5 million in sales, field support and marketing costs, including travel. The increases were offset in part by a decrease of $0.3 million in general and administrative costs, primarily insurance.

Previous wording

Interest expense increased to $2.3 million for the three months ended March 31, 2024, compared to $2.0 million for the three months ended March 31, 2023, due to an increase in average balances of our Term Loan as a result of using the paid-in-kind option for interest whereby we added part of the interest due to the Term Loan's principal balance instead of paying it in cash for the payment dates from April 2022 through March 2024 and to an increase in the Term Loan interest rate from 12.5% to 13.5% effective March 1, 2023. Interest income increased by $0.1 million for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, primarily due to higher interest yields in the three months ended March 31, 2024, partially offset by a decrease in average balances of our money market funds and short-term marketable securities.

Current wording

Interest expense increased to $4.4 million for the six months ended June 30, 2024, compared to $4.1 million for the six months ended June 30, 2023, due to an increase in average balances of our Term Loan as a result of using the PIK option for interest whereby we added part of the interest due to the Term Loan's principal balance instead of paying it in cash for the payment dates from April 2022 through June 2024 and to an increase in the Term Loan interest rate from 12.5% to 13.5% effective March 1, 2023. Interest income increased by $0.1 million for the six months ended June 30, 2024, compared to the six months ended June 30, 2023, primarily due to higher interest yields in the three months ended June 30, 2024, partially offset by a decrease in average balances of our money market funds and short-term marketable securities.

Previous wording

Other income (expense), net increased by $0.9 million to $0.1 million during the three months ended March 31, 2024, compared to $(0.8) million during the three months ended March 31, 2023, primarily due to unrealized gain, net on short-term investments in the three months ended March 31, 2024.

Current wording

Other income (expense), net increased by $0.9 million to $0.2 million during the six months ended June 30, 2024, compared to $(0.7) million during the six months ended June 30, 2023, primarily due to unrealized gain, net on short-term investments in the three months ended June 30, 2024.

Previous wording

We have financed our operations primarily through sales of our products, issuance of equity securities and debt financing. As of March 31, 2024, we had cash, cash equivalents and short-term investments of $58.9 million, compared to $66.5 million at December 31, 2023, and $58.0 million outstanding under the Term Loan, net of debt discount and issuance costs, compared to $57.0 million at December 31, 2023. In September 2020, we entered into the Term Loan and borrowed $50.0 million. In April 2021, we completed our IPO and received $105.5 million innet proceeds after deducting underwriting discounts and commissions and offering costs.

Current wording

We have financed our operations primarily through sales of our products, issuance of equity securities and debt financing. As of June 30, 2024, we had cash, cash equivalents and short-term investments of $55.5 million and $59.0 million outstanding under the Term Loan, net of debt discount and issuance costs.

Previous wording

The Term Loan bears interest at a rate of 13.5% per year. Payments under the loan are made quarterly with payment dates fixed at the end of each calendar quarter. From January 2023 through June 2025, we have the option to pay interest as follows: 8.5% per annum in cash and 5.0% per annum PIK by increasing the principal of the Term Loan. For each payment date from January 2023 through March 2024, we elected the PIK option.

Current wording

The Term Loan bears interest at a rate of 13.5% per year. Payments under the loan are made quarterly with payment dates fixed at the end of each calendar quarter. From January 2023 through June 2025, we had the option to pay interest as follows: 8.5% per annum in cash and 5.0% per annum PIK by increasing the principal of the Term Loan. For each payment date from January 2023 through June 2024, we elected the PIK option.

Previous wording

The Term Loan was interest-only through September 30, 2023, which could be extended through September 30, 2025 at our option if we completed our IPO on or prior to September 30, 2023. In connection with closing the IPO, we extended the interest-only period to September 30, 2025. Following the interest-only period, principal payment is due in one installment on September 30, 2025. The Term Loan includes a fee upon repayment of the loan equal to 10% of the aggregate principal amount being prepaid or repaid.

Current wording

The Term Loan was interest-only through September 30, 2023, which was extended to September 30, 2025 in connection with the closing of our IPO. Following the interest-only period, principal payment will be due in one installment on September 30, 2025. In May 2024, we amended the Term Loan to extend the final maturity by one year to September 30, 2026 and eliminate the PIK interest option after June 30, 2024. The Term Loan includes a fee upon repayment of the loan equal to 10% of the aggregate principal amount being prepaid or repaid.

Previous wording

The Term Loan is collateralized by substantially all of our assets. The loan agreement contains customary representations and warranties, covenants, events of default and termination provisions. The financial covenants require that we achieve minimum annual revenue thresholds and maintain a minimum balance of cash and cash equivalents. See Notes 1 and 6 to our unaudited interim condensed financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.

Current wording

The Term Loan is collateralized by substantially all of our assets. The loan agreement contains customary representations and warranties, covenants, events of default and termination provisions. The financial covenants require that we achieve minimum annual revenue thresholds and maintain a minimum balance of cash and cash equivalents. See Notes 1 and 6 to our unaudited condensed financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.

Previous wording

We expect to incur continued expenditures in the future in support of our commercialization efforts in the United States. In addition, we intend to continue to make investments in clinical studies, development of new products, and other ongoing research and development programs. We may incur additional expenses to expand our commercial organization to support our continued growth. We may incur additional expenses to further enhance our research and development efforts and to pursue commercial opportunities outside of the United States. We lease our office and manufacturing facilities in Mountain View, California under a non-cancelable operating lease which expires in June 2030. Future minimum lease payments under non-cancelable operating leases were $19.5 million as of March 31, 2024. See “Facility Lease” in Note 5 to our condensed financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.

Current wording

We expect to incur continued expenditures in the future in support of our commercialization efforts in the United States. In addition, we intend to continue to make investments in clinical studies, development of new products, and other ongoing research and development programs. We may incur additional expenses to expand our commercial organization to support our continued growth. We may incur additional expenses to further enhance our research and development efforts and to pursue commercial opportunities outside of the United States. We lease our office and manufacturing facilities in Mountain View, California under a non-cancelable operating lease which expires in June 2030. Future minimum lease payments under non-cancelable operating leases were $18.8 million as of June 30, 2024. See Note 5 to our unaudited condensed financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.

Previous wording

As of March 31, 2024, we had cash, cash equivalents and short-term investments of $58.9 million. Based on our current planned operations, we expect that our cash, cash equivalents and short-term investments will enable us to fund our operating expenses for at least 12 months from the issuance of our condensed financial statements as of and for the three months ended March 31, 2024. We have based these estimates on assumptions that may prove to be wrong, and we could utilize our available capital resources sooner than we expect.

Current wording

Based on our current planned operations, we expect that our cash, cash equivalents and short-term investments will enable us to fund our operating expenses for at least 12 months from the issuance of our unaudited condensed financial statements included elsewhere in this Quarterly Report on Form 10-Q. We have based these estimates on assumptions that may prove to be wrong, and we could utilize our available capital resources sooner than we expect.

Previous wording

Net cash used in operating activities was $7.5 million for the three months ended March 31, 2024. Cash used in operating activities was primarily a result of the net loss of $8.9 million, adjusted for non-cash charges of $4.0 million and change in operating assets and liabilities of $2.6 million. The non-cash charges primarily consisted of $2.5 million of stock-based compensation, $0.7 million of interest incurred but paid-in-kind, $0.4 million of amortization of right-of-use assets and $0.3 million of non-cash interest expense related to our term loan. The change in operating assets and liabilities was due to an increase in inventories of $0.2 million largely due to an increase in work-in-process inventory partially offset by a reduction in raw materials and finished goods, a decrease in accrued liabilities of $3.9 million largely due to accrued payroll and related expenses, a decrease in operating lease liabilities of $0.4 million, and a decrease in deferred revenue of $0.2 million, offset in part by an increase in accounts payable of $1.0 million primarily due to the timing of payments to our vendors, a decrease in accounts receivable of $0.7 million, and a decrease in in prepaid expenses and other assets of $0.5 million.

Current wording

Net cash used in operating activities was $11.4 million for the six months ended June 30, 2024. Cash used in operating activities was primarily a result of the net loss of $16.4 million, adjusted for non-cash charges of $8.0 million and change in operating assets and liabilities of $3.0 million. The non-cash charges primarily consisted of $5.1 million of stock-based compensation, $1.4 million of interest incurred but paid-in-kind, $0.8 million of amortization of right-of-use assets and $0.5 million of non-cash interest expense related to our Term Loan. The change in operating assets and liabilities was due to a decrease in accrued liabilities of $3.4 million largely due to accrued payroll and related expenses, a decrease in operating lease liabilities of $0.8 million, an increase in inventories of $0.2 million largely due to an increase in work-in-process inventory partially offset by a reduction in raw materials and finished goods, and a decrease in deferred revenue of $0.3 million, offset in part by a decrease in accounts receivable of $1.1 million, and a decrease in in prepaid expenses and other assets of $0.7 million.

Previous wording

Net cash used in operating activities was $9.7 million for the three months ended March 31, 2023. Cash used in operating activities was primarily a result of the net loss of $10.4 million, adjusted for non-cash charges of $4.3 million and change in operating assets and liabilities of $3.6 million. The non-cash charges primarily consisted of $2.1 million of stock-based compensation, $0.6 million of interest incurred but paid-in-kind, $0.3 million of amortization of right-of-use assets, $0.2 million of non-cash interest expense related to our term loan and $0.8 million of realized loss from sale of short-term investments. The change in operating assets and liabilities was due to an increase in accounts receivable of $1.7 million primarily due to an increase in sales of our products including DIXI Medical products and our RNS System, an increase in inventories of $1.1 million largely due to an increase in raw materials partially offset by a reduction in work-in-process inventory, a decrease in accrued liabilities of $0.8 million, a decrease in operating lease liabilities of $0.3 million, and a decrease in accounts payable of $0.2 million primarily due to the timing of payments to our vendors, offset in part by a decrease in prepaid expenses and other assets of $0.5 million.

Current wording

Net cash used in operating activities was $14.1 million for the six months ended June 30, 2023. Cash used in operating activities was primarily a result of the net loss of $19.5 million, adjusted for non-cash charges of $8.3 million and change in operating assets and liabilities of $2.9 million. The non-cash charges primarily consisted of $4.8 million of stock-based compensation, $1.3 million of interest incurred but paid-in-kind, $0.7 million of amortization of right-of-use assets, $0.5 million of non-cash interest expense related to our Term Loan and $0.7 million of loss from short-term investments. The change in operating assets and liabilities was due to an increase in accounts receivable of $3.4 million primarily due to an increase in sales of our RNS System and DIXI Medical products, an increase in inventories of $0.4 million largely due to an increase in raw materials partially offset by a reduction in work-in-process inventory, a decrease in operating lease liabilities of $0.7 million, and a decrease in accounts payable of $0.2 million primarily due to the timing of payments to our vendors, offset in part by a decrease in prepaid expenses and other assets of $1.1 million, and an increase in accrued liabilities of $0.8 million.

Previous wording

Net cash provided by investing activities was $10.1 million for the three months ended March 31, 2023, which primarily consisted of sales of short-term investments of $10.2 million, which amounts were partially offset by purchases of property and equipment of $0.1 million.

Current wording

Net cash provided by investing activities was $5.6 million for the six months ended June 30, 2024, which primarily consisted of sales of short-term investments of $5.8 million, partially offset by purchases of property and equipment of $0.2 million.

Previous wording

Net cash provided by investing activities was $2.4 million for the three months ended March 31, 2024, which primarily consisted of sales of short-term investments of $2.5 million, partially offset by purchases of property and equipment of $0.1 million.

Current wording

Net cash provided by investing activities was $15.4 million for the six months ended June 30, 2023, which primarily consisted of sales of short-term investments of $15.5 million, partially offset by purchases of property and equipment of $0.1 million.

Previous wording

Net cash provided by financing activities was $0.1 million for the three months ended March 31, 2024, which primarily consisted of proceeds from the issuance of common stock under employee plans of $0.7 million, partially offset by taxes withheld and paid related to net share settlement of equity awards of $0.6 million.

Current wording

Net cash provided by financing activities was $0.6 million for the six months ended June 30, 2024, which primarily consisted of proceeds from the issuance of common stock under employee plans of $1.3 million, partially offset by taxes withheld and paid related to net share settlement of equity awards of $0.7 million.

Previous wording

Net cash used in financing activities was $0.3 million for the three months ended March 31, 2023, which primarily relates to taxes withheld and paid related to net share settlement of equity awards of $0.1 million and payment of deferred offering costs of $0.1 million.

Current wording

Net cash used in financing activities was $0.1 million for the six months ended June 30, 2023, which primarily related to taxes withheld and paid related to net share settlement of equity awards of $0.2 million and payment of deferred offering costs of $0.1 million, which amounts were partially offset by receipt of proceeds from the issuance of common stock under employee plans of $0.2 million.